According to documents published by the Office of Financial Supervision in Iraq, the Ahdab oil field venture in the southeast region’s Wasit Governorate suffered a “vast loss.”
According to the documents, the contractual arrangement contains provisions that could “lead the Iraqi Oil Ministry to incur financial losses if it continues to invest in the manner specified in the contract.”
The Iraqi National Oil Business (SOMO), along with the investment company, reportedly stopped working in the field as a result of the high costs, which indicates that the operational budget will exceed the income.
After studying the deal, a legal expert who talked to RT stated that “this contract will create enormous financial losses to Iraq,” as he put it, because “the Iraqi government paid the dues of the foreign firm operating in the field before starting operations.”
The field, which was found in 1979, also has a sizable oil deposit and associated gas.
With a daily capacity of 60,000 barrels, crude oil extraction really started in June 2010 and eventually reached a daily output rate of 130,000 barrels.
And previously, Kazem Al-Shammari, a member of the House of Representatives’ Integrity Committee from the previous session, claimed in a press release that “the Chinese business running the Al-Ahdab oil field got $180 million from the finances of the Iraqi government.
He continued, “We have documents proving corruption and tax evasion in the Ahdab field development contract, where the Chinese Waha Company is refusing to pay the financial obligations it owes due to its collaboration with some powerful individuals in the Ministry of Oil and the General Tax Authority.
Source: RT + Agencies.
Iraqi documents show “severe losses” as a result of the investment deal for the Ahdab oil field
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